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mojhsa [17]
3 years ago
12

You just bought a motorcycle for $8,000. You plan to ride the motorcycle for two years, and then sell it for $3,200. During this

two-year period, you expect to ride the motorcycle 10,000 miles each year, and you expect the motorcycle to get 50 miles per gallon of gasoline. The annual cost of insurance is $960, registration costs are $80 (good for two years), and the price of gasoline is $2.50 per gallon. During this same two-year period, you will need to service your motorcycle five times, at $240 per service check, and obtain five oil changes. Each oil change costs $35. You will also need to replace your tires once during this two-year period, for a total cost of $400.
a. Calculate the total fixed cost, total variable cost, and cost per mile for the two-year period, .
b. Suppose you want to lower the cost per mile. You should focus on:
i. variable costs, because they represent a majority of the total costs.
ii. fixed costs, because they must be paid.
iii. variable costs, because they can be avoided.
iv. fixed costs, because they represent a majority of the total costs.
Business
1 answer:
lana66690 [7]3 years ago
6 0

Answer:

Total fixed costs  = $6,800

b. Total variable cost = $2,775

c.  = $0.48 per mile

2. iii variable costs, because they can be avoided.

Explanation:

Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments

If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.  

Hourly wage costs and payments for production inputs are variable costs

Variable costs are costs that vary with production

If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.  

Depreciation + Insurance + cost of registration

Depreciation = Cost - salvage = 8,000 - 3,200 = $4,800

Insurance = 960 x 2 = 1920

Total fixed cost = 4,800 + 1920 + 80  = $6,800

Total variable cost

Gasoline + Service + Oil change + tire replacement

Gasoline = 10,000/ 50 = 2000 x 2.5 x 2 = 1000

= (1000 + (240 * 5) + (35 * 5) + 400

= 1,000 + 1,200 + 175 + 400  = $2,775

Total cost / Number of miles

= (6,800 + 2,775) / (10,000 * 2 years)

= $0.48 per mile

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Given the following, calculate total manufacturing costs: Direct materials: $40,000; Direct labor: $100,000; Manufacturing overh
vfiekz [6]

Answer:

cost of goods manufactured= $278,000

Explanation:

Giving the following information:

Direct materials: $40,000

Direct labor: $100,000

Manufacturing overhead applied: $120,000

Beginning Work in process inventory: $30,000

Ending Work in process inventory: $12,000

<u>To calculate the total manufacturing costs, we need to use the following formula:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 30,000 + 40,000 + 100,000 + 120,000 - 12,000

cost of goods manufactured= $278,000

4 0
3 years ago
What do you understand from the term, ‘monopoly’. Give an example of a government-created monopoly. Is creating this monopoly ne
hodyreva [135]

Answer:

A monopoly is a company that can control the market. For example the government could put a hight import tax on shoes so no one would ship shoes into the countryman this means that the only shoe brand in the country can adjust there prices of their shoes and people would still buy them because there is no other shoe brand. This shows that they have control over the market (Or sitting at at monopoly position)

4 0
3 years ago
For the past two years, Swen Johannsen, owner/general manager of Swen's Fine Duds, a local men's clothing store, has fought to s
Viefleur [7K]

Answer:

Swen is using product/service repositioning strategy.

Explanation:

Product Repositioning simply refers to the art of altering the target markets perception of one's product and or services.

Swen is still in the clothing business. He has only changed the way he delivers it to the target consumers.

Of course, this sometimes calls for a change in product mix (which refers to altering the type of products being offered). However, the central idea of the strategy still holds as customers now see the business differently.

This type of strategy is easier to pull off for start-ups, or unpopular businesses trying to make a comeback. Where the business is a well-established brand, it can prove extremely difficult and may be costly.

Cheers.

4 0
3 years ago
How would you define customer satisfaction?
wlad13 [49]

Answer:

Customer satisfaction is defined as a measurement that determines how happy customers are with a company's products, services, and capabilities. Customer satisfaction information, including surveys and ratings, can help a company determine how to best improve or changes its products and services.

3 0
3 years ago
Productivity in the United States doubled between 1945 and 1990. However, the work week didn't get shorter because
mel-nik [20]

Answer:

the standard of living increased

Explanation:

Between the years 1948 and 1990, the level of productivity in the United States of America increased tremendously, to the extent that it was in the doubled fold. Consequently, this increase in the level of productivity simply exemplified that, there is a substantial increase in the standard of living for the average American.

Hence, it can be concluded that, in this case, the workweek didn't get shorter because "the standard of living increased."

3 0
3 years ago
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